Thus, the moving average cost of the green widgets was $5 per unit at the beginning of the month, and $5.88 at the end of the month. We will repeat the example, but now include several sales. Remember that we recalculate the moving average after every transaction.
Finally, pass-through billing is an arrangement in which a laboratory tests samples provided by a physician for a fee, and allows the physician to profit by billing payers directly for the laboratory services for more than the physician paid the laboratory. This approach is typically avoided for Medicare and Medicaid patients by most physicians.
The Virtues of the Pass-through Fee Arrangement. Another, less common form of payment processor billing is known as the âpass-throughâ or âcost plusâ method. Under the pass-through model, the processor reports on all of the constituent components, âIâ, âAâ and âPâ as separate fee areas. Generally speaking, there is no notion of a discount. Interchange fees and Assessments are reported in the same format as the Associationsâ published rates.